Yeah, they should be used sparingly. I can see them being useful if the item makes sense for the environment or to the story. Random cursed items are indeed just for lols, I think.
From a verisimilitude pov, if magic item creation is rare and most NPCs think like PCs that a cursed item is a pita, then it makes sense that the vast majority of cursed items would have a high propensity to be permanently disposed of. Does an NPC really want his grandkids to find his old cursed sword in the attic?
Cursed items should be almost non-existent. Keeping one is like keeping sour milk in your fridge.
Sure, the occasional rich lord might have one to discourage thieves or whatever ("Ha ha, steal that"), but even the rich lord should have an extremely hard time finding one.